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DECISION No.41/1998/QD-TTg OF FEBRUARY 20, 1998 ON THE DELEGATION OF THE LICENSING OF FOREIGN DIRECT INVESTMENT PROJECTS

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to the Law on Foreign Investment in Vietnam of November 12, 1996;

Pursuant to Decree No. 12-CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam and Decree No. 10/1998/ND-CP of January 23, 1998 of the Government on a number of measures to encourage and guarantee foreign investment activities in Vietnam;

At the proposal of the Minister of Planning and Investment,

DECIDES:

Article 1.- To delegate the licensing of foreign direct investment projects under the Law on Foreign Investment in Vietnam of November 12, 1996 to the People's Committees of the following provinces (referred to as the provincial People's Committees):

1. The People's Committee of Ha Tay province.

2. The People's Committee of Hai Duong province.

3. The People's Committee of Thanh Hoa province.

4. The People's Committee of Nghe An province.

5. The People's Committee of Thua Thien - Hue province.

6. The People's Committee of Quang Nam province.

7. The People's Committee of Khanh Hoa province.

8. The People's Committee of Lam Dong province.

Article 2.- The provincial People's Committees stated in Article 1 of this Decision shall have to receive projects dossiers, evaluate and grant investment licenses to foreign direct investment projects in their respective localities as stated in Article 3 of this Decision.

Article 3.- Foreign direct investment projects to be licensed by the provincial People's Committees must satisfy the following conditions:

1. To comply with the economic-technical branch's development master plan and the locality's socio-economic development master plan and plans already approved.

2. To have an investment capital of up to 5 million USD, except for projects stated in Article 4 this Decision.

3. To have a percentage of products for export as stipulated by the Ministry of Planning and Investment for each period.

4. Foreign invested capital enterprises or foreign business cooperation parties shall ensure their own foreign currency demands.

5. Equipment, machinery and technologies must comply with current regulations; if not, they must be approved in writing by a competent State agency in charge of the economic-technical branch before the investment licenses are granted.

6. To satisfy the requirements on environmental protection, labor safety and fire and explosion prevention and fight.

Article 4.- The licensing of the following projects shall not be delegated to the provincial People's Committees:

1. Group A projects as prescribed in Article 93 of Decree No. 12-CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

2. The projects in the following fields:

- Oil and gas prospection, exploitation and services.

- Electricity production.

- Construction of seaports, airfields, national highways and railway.

- Production of cement, metallurgy, production of sugar, production of alcohol, beer and cigarette.

3. The projects in industrial parks, export processing zones and high-tech parks.

Article 5.-

1. Investment project dossiers shall be compiled according to the guidance of the Ministry of Planning and Investment.

2. The project evaluation shall comply with the provisions in Articles 83, 92, 94, 96 and 100 of Decree No. 12-CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

The provincial People's Committees shall have to consult the ministries and branches regarding the matters that come under the latter's jurisdiction but have not been specified yet.

The ministries and branches which are consulted on projects, including supplements and/or amendments thereto, shall have to reply in writing within seven days after receiving the written inquiry of the provincial People's Committees; past such time limit if they fails to issue a written reply, the project shall be deemed to be approved.

3. Investment licenses shall be made according to the form of the Ministry of Planning and Investment.

Within seven days after granting the investment license, the provincial People's Committee shall send the original investment license to the Ministry of Planning and Investment and its copies to the Office of the Government, the Ministry of Finance, the Ministry of Trade and the ministry in charge of the economic and technical branch.

Article 6.- The provincial People's Committees shall be entitled to supplement and/or amend investment licenses of the projects under their delegated licensing power.

Any supplement or amendment to an investment license that is beyond their delegated power can be effected only after it is approved in writing by the Ministry of Planning and Investment.

Article 7.- The Ministry of Trade authorizes the People's Committees of the provinces and cities directly under the Central Government which are delegated to grant investment licenses to approve the import and export plans of foreign invested enterprises and business cooperation parties which are outside industrial parks.

Article 8.- Every quarter, six months and year, the provincial People's Committees shall make sum-up reports on the granting, supplementing and amending investment licenses and send them to the Office of the Government and the Ministry of Planning and Investment.

Article 9.- The Ministry of Planning and Investment shall consider before continuing to delegate the licensing power to the managing boards of newly established industrial parks; issue detailed provisions on the export percentage so that the People's Committees of the provinces and cities directly under the Central Government and the provincial-level managing boards of industrial parks can take the initiative in evaluating and licensing investment projects.

Article 10.- This Decision takes effect 15 days after its signing.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People's Committees of the concerned provinces and cities directly under the Central Government shall have to implement this Decision.

The Prime Minister

PHAN VAN KHAI